US stocks have tumbled again today in the absence of a deal on the bailout plan.

Andrew Snyder says the current “neck-breaking” volatility creates great profit plays for contrarain investors. He recommends using puts to bet on further downside for Boeing (NYSE:BA).

To hedge, he advises investors buy call options on National City Corporation (NYSE:NCC). This bank has a solid balance sheet and could soar if the $700 billion bailout is passed in Congress.

U.S. stocks soared yesterday (Tuesday) – with the Dow Jones Industrial Average gaining 485 points in posting its third-biggest point gain ever – as investors surged back into stocks just one day after the surprise rejection of a $700 billion bailout plan touched off a record sell-off.

Yesterday, traders sent the Dow down a record 777 points. Today, the mood is more upbeat. The Dow is up 363 points. Traders clearly still want to believe the government can still help sort out Wall Street’s problems.

Justice Litle isn’t fully sold on the bailout. But he says it isn’t an option to let Mr. Market sort himself out this time: the US is too leveraged to follow Andrew Mellon’s “liquidationist” approach during the Great Depression.

That’s why the feds will do whatever it takes to prop up the system… and run the dollar into the ground. And that’s why you should buy gold now.

Bailout package is voted down! Biggest one day point drop for the DOW! Dollar rallies hard… Carry trades unwind… Again! And Now… Today’s Pfennig!

Ready to spend $700 Billion… Wachovia wants to sell itself… Dollar rallies hard… The rot on the vine spreads… And Now… Today’s Pfennig!

Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS), Wall Street’s last remaining investment banks, are converting to holding companies now that the collapse of The Bear Stearns Cos. Inc. and Lehman Bros. Holdings Inc. (OTC: LEHMQ) have drained clients and investors of any remaining confidence in the companies’ business models.

Hank Paulson wants to spend $700 billion to buy up banks bad debt in the hope it can ‘fix’ the crisis on Wall Street.

The audacity is breathtaking. It requires just $100 billion less of the cost of the war in Iraq to date. Moreover, it is a stunning power grab by the Treasury secretary who, if the bill is passed, will be granted “the most incredible powers ever bestowed on one person over the economic and financial life of the nation.” (The New York Times.)

But there are ways to profit from the madness. Martin Hutchinson has picked three winners.

With the commercial-paper market evaporating – causing its ability to operate to do the same – Morgan Stanley escalated its frenetic search for a well-capitalized partner to help it restore investor confidence. Morgan Stanley shares have lost more than 40% in the past week, leaving Morgan Stanley Chief Executive John J. Mack seeking a tie-up with a commercial bank.

U.S. stocks rallied the most in six years yesterday (Thursday) – with traders actually cheering the ticker action from the floor of the New York Stock Exchange – on the news that the federal government is taking steps to shore up the unraveling U.S. financial system and end the global credit crisis.

Quality leaves a trail of accomplishment. Somehow– we must believe — it’s possible to tell companies that will do well and fly right from those that won’t. That’s the only rational reason to choose stocks. So smart investors look for key information—the bits that predict where to find the winners.